Interim Report 2022 - The GPT Group
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Interim Report 2022
BUSINESS OVERVIEW
Introduction
Welcome to The GPT Group 2022 Interim Report.
GPT acknowledges the Traditional Custodians of the lands on which our business and
assets operate, and recognise their ongoing connection to land, waters and community.
We pay our respects to First Nations Elders past, present and emerging.
The GPT Group (GPT) is a stapled entity comprised of the General Property Trust (the Trust) and its controlled entities and GPT Management
Holdings Limited (the Company) and its controlled entities.
General Property Trust is a registered scheme, registered and domiciled in Australia. GPT RE Limited is the Responsible Entity of the General
Property Trust. GPT Management Holdings is a company limited by shares, incorporated and domiciled in Australia. GPT RE Limited is a
wholly owned entity of GPT Management Holdings Limited.
In this report references to ‘GPT’, ‘Group’, ‘we’, ‘us’ and ‘our’ refer to The GPT Group, unless otherwise stated. Information in this Interim Report
is stated as at 30 June 2022 unless otherwise indicated. All values are expressed in Australian currency unless otherwise indicated. Key
statistics for the Retail, Office and Logistics divisions include The GPT Group’s investment interest in the GPT Wholesale Shopping Centre
Fund (GWSCF), the GPT Wholesale Office Fund (GWOF), and the GPT QuadReal Logistics Trust (GQLT) respectively.
2022 First half highlights
$326.5m 97.5%
FUNDS FROM OPERATIONS (FFO) PORTFOLIO OCCUPANCY
$8.1b
ESTIMATED END VALUE
(30 June 2021: $302.3m) (31 December 2021: 97.7%) OF DEVELOPMENT PIPELINE
(31 December 2021: $6.4b)
12.70¢
DISTRIBUTION PER SECURITY
10.8%
12 MONTH TOTAL RETURN
82%
EMISSIONS REDUCTION SINCE 2005
(30 June 2021: 13.30¢) (30 June 2021: 10.2%) (31 December 2021: 82%)
Reporting suite
The Group 2022 Interim Report forms part of our reporting suite. Further information is available in our broader reporting suite, which includes:
RESULTS PROPERTY INTEGRATED CORPORATE SUSTAINABILITY CLIMATE MODERN SLAVERY
PRESENTATION COMPENDIUM ANNUAL REPORT GOVERNANCE REPORT DISCLOSURE STATEMENT
AND DATA PACK Consolidated A summary of the STATEMENT A detailed report STATEMENT A summary of the
A summary of GPT’s information about value created by An annual statement of our sustainability An annual statement actions taken during
operating and financial the assets in the GPT’s business of how GPT addresses policies, priorities of the steps we are the year and those
performance and key Group’s property activities together the ASX Corporate and progress along taking to identify, proposed to be taken
developments in our portfolio, published with the annual Governance Council’s with future targets, assess and manage in the future, to assess
business and portfolio, every six months. financial statements Corporate Governance released annually. climate change risks and address modern
accompanied by a data for the Group. Principles and and opportunities, slavery risks in our
supplement released Recommendations prepared in accordance business.
every six months. (4th Edition). with the TCFD
recommendations.
THE GPT GROUP INTERIM REPORT 2022
BUSINESS GROUP RISK DIRECTORS' FINANCIAL
OVERVIEW PERFORMANCE MANAGEMENT REPORT STATEMENTS
About GPT
GPT is a vertically integrated diversified property group that owns and actively
manages a $27.4 billion portfolio of high quality Australian office, logistics and
retail assets. The Group utilises its real estate management platform to enhance
returns through property development and funds management.
Listed on the Australian Securities Exchange (ASX) since 1971, today The GPT Group is a constituent of the S&P/ASX 50 Index with
a substantial investor base of more than 31,000 securityholders.
Our vision Our purpose
To be the most respected property company To create value for investors by providing high quality real estate
in Australia in the eyes of our investors, people, spaces that enable people to excel and our customers and communities
customers and communities. to prosper in a sustainable way.
Our values
Each day, our core values guide our people as they work to deliver on our purpose.
Safety First – Deliver Today, Value Differences, Raise the Bar Speak Up
Everyone, Always Create Tomorrow Play as a Team We think big, take We are courageous
We care about people We focus on the present We embrace our diverse initiative, share ideas and speak up about
above everything else. and the future to deliver backgrounds, experiences and challenge the things that matter.
consistent, dependable and perspectives, working status quo.
performance. together for the best
outcome.
25 Niton Drive, Truganina THE GPT GROUP INTERIM REPORT 2022 1
GROUP PERFORMANCE
Group Performance
Review of Operations and Operating Result
The Group delivered a solid result in the first half of 2022, despite
the ongoing impacts of the global COVID-19 pandemic and the Funds From Operations (FFO)
uncertain economic environment driven by high inflation and rising Funds From Operations (FFO) represents GPT’s
interest rates. All three business segments reported increased underlying earnings from its operations. This is
Funds From Operations on the prior corresponding period. determined by adjusting statutory net profit after tax
This was partially offset by higher corporate and financing costs. (under Australian Accounting Standards) for certain
items which are non-cash, unrealised or capital in nature.
Notwithstanding the effects of COVID-19, retail sales across the
portfolio were generally well above 2019 pre-pandemic levels with
the only exception being our CBD located asset at Melbourne
Central where customer visitation has not fully recovered.
GPT delivered FFO of $326.5 million for the half year ended
High occupancy was retained across the Retail portfolio and
30 June 2022, up 8.0 per cent on the prior corresponding period
leasing spreads continued to improve, with lease structures
(30 June 2021: $302.3 million). FFO per security increased
consisting of fixed base rents and annual fixed increases.
9.0 per cent to 17.04 cents, reflecting the reduction in securities
Our prime grade Office portfolio occupancy improved compared
due to the on-market buyback in the prior period.
with June 2021 reflecting the lease up of developments at
32 Smith and Queen & Collins and was in-line with December Each segment’s operational financial performance is detailed
2021 occupancy. Low levels of physical occupancy in part due to from page 6. The Group FFO result includes corporate
the Omicron outbreak and unfavourable weather conditions, led to management expenses of $28.3 million (30 June 2021:
subdued leasing activity in the March 2022 quarter, with activity $23.4 million). Total management expenses including the
increasing in the June 2022 quarter as the operating environment segments is $43.5 million (30 June 2021: $39.8 million).
improved. Ongoing structural tailwinds in Logistics generated The increase in expenses is mainly due to higher cloud based
solid tenant demand, maintaining high occupancy and driving technology and one-off reorganisation costs.
strong rental outcomes across our Logistics portfolio.
Finance costs from borrowings increased to $54.2 million
During the half we continued to execute on our strategic objectives. (30 June 2021: $44.5 million). This was due to an increase in
We increased our investment in the Logistics sector, completing borrowings of approximately $0.9 billion since 30 June 2021.
two developments with a further four projects underway.
GPT’s statutory net profit after tax was $529.7 million, as
Our Logistics partnership with QuadReal is well progressed,
compared to $760.5 million in the prior corresponding period,
with half of the $2 billion target committed. Logistics currently
predominantly due to lower positive investment property valuation
represents 28 per cent of the Group’s diversified property
movements of $219.5 million (30 June 2021: $471.7 million).
portfolio. Our Office development pipeline grew by 22 per cent
to $5.5 billion 1. The GPT Wholesale Office Fund’s development The Group’s 12 month Total Return was 10.8 per cent
at 51 Flinders Lane is underway and during the period a (30 June 2021: 10.2 per cent) predominantly as a result of
development site was secured for the Fund in the North Sydney investment property revaluation gains driving the increase in NTA
CBD. Mixed-use development schemes are progressing at per stapled security to $6.26 plus the FFO yield of 5.2 per cent
Rouse Hill Town Centre and Highpoint Shopping Centre. The sale (30 June 2021: 5.7 per cent).
of a non-core retail asset, Casuarina Square, owned jointly by GPT
and the GPT Wholesale Shopping Centre Fund was completed in Distribution
March 2022. Funds Management growth remains a key focus for The Group targets to distribute 95 to 105 per cent of free cash
the Group and in April 2022, UniSuper selected GPT to manage its flow, defined as operating cash flow less maintenance and leasing
$2.8 billion portfolio of real estate investments. The transition to capex and inventory movements.
GPT management is expected to complete in September 2022.
Distributions to stapled securityholders relating to the half year
The Group’s gearing at 30 June 2022 of 27.3 per cent remains ended 30 June 2022 are $243.3 million (30 June 2021:
below the mid-point of our stated range of 25 - 35 per cent. $254.8 million), representing an interim distribution of 12.7 cents
per ordinary stapled security, a decrease of 4.5 per cent on 2021
(30 June 2021: 13.3 cents). The payout ratio for the half year ended
30 June 2022 is 100 per cent of free cash flow. The decrease in
distribution is due to lower free cash flow as a result of higher
maintenance capex and lease incentives.
1. Includes GPT and GWOF opportunities.
2 THE GPT GROUP INTERIM REPORT 2022BUSINESS GROUP RISK DIRECTORS' FINANCIAL
OVERVIEW PERFORMANCE MANAGEMENT REPORT STATEMENTS
Group Funds From Operations (FFO) Financial Result
earnings composition 1H 2022 30 Jun 22 30 Jun 21 Change
For the half year ended $M $M %
Retail Office Retail
37% 41% – Operations net income 144.8 141.0
– Funds management net income 5.8 5.8
– Development net income 0.2 (0.2)
150.8 146.6 2.9%
Office
– Operations net income 148.0 133.3
– Funds management net income 20.7 18.3
– Development net income 0.9 1.2
169.6 152.8 11.0%
Logistics Logistics
22% – Operations net income 90.7 73.5
– Funds management net income 1.0 (0.2)
Funds From Operations ($M) – Development net income 0.5 2.0
326.5 92.2 75.3 22.4%
310.2 302.3
252.2
Corporate management expenses (28.3) (23.4) 20.9%
244.5 Net finance costs (54.1) (44.3) 22.1%
Income tax expense (3.7) (4.7) (21.3%)
Funds from Operations (FFO) 326.5 302.3 8.0%
Non-FFO items:
Valuation increase 219.5 471.7 (53.5%)
Financial instruments mark to market, net (16.3) (13.5) 20.7%
foreign exchange movements and other items
Net profit for the half year after tax 529.7 760.5 (30.3%)
1H20 2H20 1H21 2H21 1H22
FFO per ordinary stapled security (cents) 17.04 15.64 9.0%
Funds from Operations (FFO) 326.5 302.3 8.0%
FFO per ordinary stapled security (cents)
Maintenance capex (14.8) (12.9) 14.7%
17.04
15.93 15.64 Lease incentives (41.1) (23.1) 77.9%
Adjusted Funds from Operations (AFFO) 270.6 266.3 1.6%
13.18
12.55
Distributions 1 243.3 254.8 (4.5%)
Distribution per ordinary stapled security 12.70 13.30 (4.5%)
(cents)
1. Distribution is based on free cash flow.
1H20 2H20 1H21 2H21 1H22
Distribution per ordinary stapled security (cents)
13.20 13.30 12.70
9.90
9.30
1H20 2H20 1H21 2H21 1H22
THE GPT GROUP INTERIM REPORT 2022 3GROUP PERFORMANCE
Group Performance CONTINUED
Unlevered Total Return (%)
The unlevered Total Return at the investment portfolio level for the 12 months to 30 June 2022 was 8.9 per cent with each portfolio's
performance detailed in the following chart.
Office Logistics Retail Total Portfolio
(incl GWOF interest) (incl GQLT interest) (incl GWSCF interest) (including equity interests)
9.3 14.0
4.2 8.9 4.4 8.9
4.7 4.7 1.8 5.9 4.5
4.1
Income Return Capital Return Total Return
Financial Position
30 Jun 22 31 Dec 21 Change Balance sheet
$M $M % » The Group independently valued 70.6 per cent (by value) of
Portfolio assets investment properties as at 30 June 2022. Valuations were
Retail 5,698.5 5,750.2 (0.9%) conducted by valuers with appropriate experience and expertise.
Office 6,238.5 6,170.0 1.1% » The independent valuations contain judgements relating
Logistics 4,764.8 4,539.9 5.0% to the ongoing impact of COVID-19 in addition to a number
Total portfolio assets 16,701.8 16,460.1 1.5% of assumptions, estimates and judgements on the future
performance of each property including market rents and
Financing and corporate assets 616.1 719.6 (14.4%)
growth rates, occupancy, capital expenditure and investment
Total assets 17,317.9 17,179.7 0.8% metrics. Total portfolio assets increased by 1.5 per cent in the
Borrowings 4,907.3 5,139.3 (4.5%) half year ended 30 June 2022 due to positive property valuation
Other liabilities 399.9 367.1 8.9% movements and investment in developments, offset by the
divestment of Casuarina Square.
Total liabilities 5,307.2 5,506.4 (3.6%)
» Total borrowings decreased by $232.0 million, largely due to
Net assets 12,010.7 11,673.3 2.9%
the divestment of Casuarina Square.
Total number of ordinary 1,915.6 1,915.6 —
stapled securities (million)
NTA ($ per security) 1 6.26 6.09 2.8%
1. Includes all right-of-use assets of the GPT Group.
4 THE GPT GROUP INTERIM REPORT 2022BUSINESS GROUP RISK DIRECTORS' FINANCIAL
OVERVIEW PERFORMANCE MANAGEMENT REPORT STATEMENTS
Capital management Going concern
GPT continues to maintain a strong focus on capital management. GPT believes it is able to meet its liabilities and commitments as
and when they fall due for at least 12 months from the reporting
Key matters for the period include:
date. In reaching this position, GPT has taken into account the
» Net gearing decreased to 27.3 per cent (31 December 2021: following factors:
28.2 per cent). This was a result of net asset divestment and
» Available liquidity, through cash and undrawn facilities, of
an increase in asset valuations during the period.
$1,124.0 million (after allowing for refinancing of $517.9 million
» Weighted average cost of debt for the half year was 2.5 per cent, of outstanding commercial paper) as at 30 June 2022;
up from 2.4 per cent for the year to 31 December 2021.
» Weighted average debt expiry of 6.3 years, with less than
» Mark to market movements on derivatives and borrowings has $55.0 million of debt (excluding commercial paper outstanding)
decreased net tangible assets by $20.1 million. due between the date of this report and 30 June 2023;
» Primary covenant gearing of 27.5 per cent, compared to
As at 30 Jun 22 31 Dec 21 Change
a covenant level of 50.0 per cent; and
Net gearing 27.3% 28.2% Down 90bps » Interest cover ratio at 30 June 2022 of 7.1 times, compared
Weighted average 6.3 years 6.3 years Unchanged to a covenant level of 2.0 times.
debt maturity
Interest rate hedging 65% 69% Down 400bps Cash flows
The cash balance as at June 2022 decreased to $49.0 million
S&P/Moody’s A (negative)/ A (negative)/ Unchanged
(31 December 2021: $61.5 million). The following table shows the
credit rating A2 (stable) A2 (stable)
reconciliation from FFO to the cash flow from operating activities
and free cash flow:
30 Jun 22 30 Jun 21 Change
For the half year ended $M $M %
Sources of funds FFO 326.5 302.3 8.0%
Foreign Less: non-cash items (13.6) (18.7) 27.3%
bank debt 4% included in FFO
(Less)/add: net movement (10.7) 7.3 N/A
Domestic USPP in inventory
bank debt 15% 33%
Movements in working capital (30.4) (1.9) Large
and reserves
Secured
bank debt 2% Net cash inflows from 271.8 289.0 (6.0%)
operating activities
Commercial Add/(less): net movement 10.7 (7.3) N/A
Paper 11% in inventory
Less: maintenance capex (39.2) (26.6) (47.4%)
CPI Bonds
and lease incentives
2%
(excluding rent free)
Foreign MTNs Domestic
12% MTNs 21% Free cash flow 243.3 255.1 (4.6%)
The decrease in free cash flow is a result of lower operating
cash flows caused by movements in working capital and higher
maintenance capex and lease incentives.
The Non-IFRS information included above has not been audited
in accordance with Australian Auditing Standards, but has
been derived from note 1 and note 9 of the accompanying
financial statements.
THE GPT GROUP INTERIM REPORT 2022 5GROUP PERFORMANCE
Office
$6.2b
Performance
Operations net income
The Office portfolio achieved a net revaluation uplift of $6.8 million (0.1 per cent) in the
OFFICE PORTFOLIO VALUE 1 first half of 2022 (30 June 2021: net revaluation of $121.2 million), including GPT’s equity
(31 December 2021: $6.1b) interest in the GPT Wholesale Office Fund (GWOF). The largest revaluations were recorded at
Australia Square (50 per cent) of $15.0 million, 181 William & 550 Bourke Streets (50 per cent)
92.0%
of $5.7 million and 32 Smith of $4.4 million, which was offset by a devaluation at 60 Station
Street of $19.9 million.
Office occupancy as at June 2022 is 92.0 per cent and the portfolio WALE is 4.7 years.
OFFICE PORTFOLIO OCCUPANCY Operations net income for the period ending 30 June 2022 increased 11.0 per cent, as
(31 December 2021: 92.9%) a result of the acquisition of 62 Northbourne Avenue, Canberra in November 2021 and
the lease up of the Queen & Collins and 32 Smith developments that reached practical
4.7years
completion last year. Comparable income growth for the portfolio was 5.0 per cent.
During the period, leasing activity and office attendance was impacted by the disruption
caused by the Omicron variant of COVID-19 and severe weather across Queensland and
OFFICE PORTFOLIO WEIGHTED New South Wales.
AVERAGE LEASE EXPIRY
(31 December 2021: 5.0 years)
With elevated levels of vacancy in the office market, leasing remains competitive. The Group’s
differentiated space offerings appeal to a broad range of tenants and allows the Group to
satisfy tenants’ evolving office space needs. The Group invests in high quality Office assets,
4.77%
being 100 per cent prime grade, which are benefiting from greater tenant demand compared
to secondary assets.
Management is concluding rent relief arrangements, predominantly for retail tenants in
OFFICE PORTFOLIO WEIGHTED Victoria and New South Wales. This has reduced net income by $0.6 million for processed
AVERAGE CAPITALISATION RATE and expected rent waivers and estimated loss for uncollected rent for the six months to
(31 December 2021: 4.77%)
30 June 2022. The cash collection rate for the period was 100%.
8.9%
Funds Management
Office Funds Management income increased to $20.7 million, as a result of GWOF’s growth
during the period from $9.3 billion in gross asset value in June 2021 to $10.1 billion in
June 2022, driven by investment property revaluations and acquisitions.
OFFICE PORTFOLIO
12 MONTH TOTAL RETURN Development
(30 June 2021: 7.6%)
During the period, GWOF secured rights to acquire two adjacent properties at 153 and
157 Walker Street in North Sydney. The properties are strategically located in close proximity
$5.5b
to the under construction Victoria Cross metro station and the North Sydney train station.
157 Walker Street settled in June 2022 and 153 Walker Street has a deferred settlement due
to occur in 2024. The Fund is working to secure Development Approval for a prime grade
tower of over 45,000 sqm (dependent on planning outcomes).
ESTIMATED END VALUE OF
OFFICE DEVELOPMENT PIPELINE 2 GWOF’s development of 51 Flinders Lane in Melbourne is underway, with completion
expected in late 2025. The project will incorporate 28,300sqm of prime office space targeting
high quality boutique occupiers in the popular east end of the CBD.
Master planning is also progressing for other projects in the pipeline, including Cockle Bay
Park in Sydney, 81 & 91 George Street, Parramatta, 300 Lonsdale Street, Melbourne and
Skygarden in Brisbane.
1. Includes GPT's interest in GWOF.
2. Includes GPT and GWOF opportunities.
6 THE GPT GROUP INTERIM REPORT 2022BUSINESS GROUP RISK DIRECTORS' FINANCIAL
OVERVIEW PERFORMANCE MANAGEMENT REPORT STATEMENTS
Logistics
$4.6b
Performance
Operations net income
The Logistics portfolio recorded a net revaluation uplift of $115.4 million (2.6 per cent)
in the first half of 2022 (30 June 2021: $314.7 million) with the increase largely driven by LOGISTICS PORTFOLIO VALUE 1
leasing outcomes achieved and uplift in market rents. (31 December 2021: $4.4b)
Operations net income growth of 23.4 per cent has been delivered as a result of development
98.7%
completions and assets acquired over the last year. Comparable income growth for the half
was 2.4 per cent. Logistics occupancy as at June 2022 is 98.7 per cent and the portfolio
has a WALE of 6.2 years.
The Group continued to execute its Logistics growth strategy, with the portfolio value LOGISTICS PORTFOLIO OCCUPANCY
now totalling $4.6 billion. (31 December 2021: 98.8%)
During the period two fund-through acquisitions held in the GPT QuadReal Logistics
6.2years
Trust (GQLT) reached completion. In Brisbane, a 12,500sqm facility at 18 Gorrick
Court, Bundamba reached completion in May, and is leased to Saab for a 6 year term.
In Melbourne, a 70,100sqm facility at 1 Hurst Drive, Tarneit reached completion in June
and is leased to e-commerce retailer vidaXL for a 10 year term. An additional fund-through LOGISTICS PORTFOLIO WEIGHTED
acquisition in the south-east Melbourne market of Keysborough is expected to reach AVERAGE LEASE EXPIRY
completion in the second half and is fully leased. (31 December 2021: 6.5 years)
4.09%
Funds Management
Funds Management income increased to $1.0 million, as a result of the Group’s growing
partnership with QuadReal. The GQLT was formed to create a prime Australian logistics
portfolio and the target commitment increased during the period from $1 billion to
$2 billion of which GPT’s share is 50.1 per cent. LOGISTICS PORTFOLIO WEIGHTED
AVERAGE CAPITALISATION RATE
Half of the $2 billion target has been committed through securing land banks and (31 December 2021: 4.11%)
developing the pipeline of opportunities over time. To 30 June 2022, $0.3 billion of
capital has been deployed.
Development
The GQLT’s development at 100 Metroplex Place, Wacol in Brisbane reached practical
completion in June. The 17,100sqm development was fully leased from completion to
14.0%
LOGISTICS PORTFOLIO
Bulk Group and Mainfreight, and has a WALE of 4.9 years. 12 MONTH TOTAL RETURN
(30 June 2021: 15.1%)
In early July, the Group completed a facility in Truganina in Melbourne at our Foundation
Estate, and the 10,700sqm facility has been 100 per cent leased to Calibre Furniture for
$1.9b
a 7 year term.
GPT has two developments that are expected to reach completion in the second half.
In Truganina Stages 4 and 5 of our Gateway Logistics Hub are progressing well, with
100 per cent of the space leased to two occupiers. ESTIMATED END VALUE OF
LOGISTICS DEVELOPMENT PIPELINE 2
In Brisbane, the final stage of our Wembley Business Park estate at Berrinba is underway.
15,100sqm of the 21,800sqm warehouse has been leased to JB Hi-Fi, who are relocating
into the new development from their existing facility in the estate. The remainder of the
development and the back-fill space being vacated by JB Hi-Fi are being marketed to
prospective tenants.
The Group continues to focus on replenishing the landbank to maintain a pipeline of future
development opportunities, and in July 2022 the GQLT acquired 35.2 hectares in Epping,
in Melbourne’s North, with settlement to occur in 2023.
1. Includes GPT's interest in the GQLT.
2. Includes GPT and GQLT opportunities.
THE GPT GROUP INTERIM REPORT 2022 7GROUP PERFORMANCE
Retail
$5.6b
Performance
Operations net income
The Retail portfolio achieved a net revaluation uplift of $97.3 million (1.8 per cent) in the
RETAIL PORTFOLIO VALUE first half of 2022 (30 June 2021: $35.8 million), including GPT’s equity interest in the GPT
(31 December 2021: $5.6 billion) Wholesale Shopping Centre Fund (GWSCF). The weighted average capitalisation rate firmed
slightly to 4.98 per cent (31 December 2021: 5.03 per cent ) as a result of an uplift in the
99.3%
quality of the portfolio composition post the divestment of Casuarina Square in March.
Operations net income was $144.8 million, reflecting an increase of 2.7 per cent compared
to June 2021. This result was impacted by rental relief given to eligible tenants due to the
RETAIL PORTFOLIO OCCUPANCY extension of the Code of Conduct in NSW and Victoria to March 2022 in relation to the
(31 December 2021: 99.1%) Omicron COVID-19 outbreak.
Despite the impacts from COVID-19 the portfolio remains resilient with high occupancy
3.9years
of 99.3 per cent (31 December 2021: 99.1 per cent).
The Group completed 405 leasing deals during the period, with average fixed annual rental
increases of 4.4 per cent (31 December 2021: 4.3 per cent) and an average lease term of
RETAIL PORTFOLIO WEIGHTED 4.6 years (31 December 2021: 4.3 years). Leasing spreads improved to negative 4.9 per cent
AVERAGE LEASE EXPIRY (31 December 2021: negative 8.5 per cent).
(31 December 2021: 3.9 years)
Total centre sales were up 11.5 per cent for the first half of 2022, and total specialty sales were
up 11.6 per cent. Total centre sales were also up 2.9 per cent on the first half of pre-pandemic
4.98%
2019. Sales growth in all retail categories was positive for the first half of 2022 driven by
a resurgence in discretionary spending, particularly in Fashion, Dining, Health and Beauty.
Cinemas were up 89.3 per cent due to the ability to now trade without COVID restrictions.
RETAIL PORTFOLIO WEIGHTED The recovery of Melbourne Central, our largest retail investment property and one of the
AVERAGE CAPITALISATION RATE leading retail destinations in Australia, is progressing well with the centre benefiting from the
(31 December 2021: 5.03%)
return of students to the Melbourne CBD. The asset continues to be in strong demand by
retailers, with a number of new flagship stores and experience concepts.
5.9%
RETAIL PORTFOLIO
Funds Management
Retail Funds Management income was stable at $5.8 million with reductions in the gross
asset value of GWSCF post the Wollongong and Casuarina asset divestments being offset
by revaluation gains and capital expenditure. Funds Management growth continues to be a
12 MONTH TOTAL RETURN
key focus and in April 2022, UniSuper selected GPT to manage its $2.8 billion portfolio of real
(30 June 2021: 2.1%)
estate investments, which are predominantly Retail assets. The transition of the management
of the UniSuper mandate to GPT is expected to complete in September 2022.
$0.7b
ESTIMATED END VALUE OF
Development
The Group is focussed on maximising use and value from landholdings adjacent to the
Retail assets and continues to advance mixed-use opportunities primarily at Rouse Hill Town
Centre and Highpoint Shopping Centre. The expansion of the Rouse Hill Town Centre and
RETAIL DEVELOPMENT PIPELINE 1
development of residential apartments is being progressed and is expected to commence in
the first half of 2023, subject to market conditions and authority approvals.
1. Includes GPT and GWSCF opportunities.
8 THE GPT GROUP INTERIM REPORT 2022BUSINESS GROUP RISK DIRECTORS' FINANCIAL
OVERVIEW PERFORMANCE MANAGEMENT REPORT STATEMENTS
Prospects
GPT is an owner and manager of There has been a strong recovery in sales Our commitment to being a leader in
$27.4 billion of high quality, diversified performance across GPT’s Retail portfolio, ESG enhances and protects GPT and
real estate assets with a balance sheet buoyed by low unemployment and elevated its assets for the long term. GPT has
portfolio valued at $16.4 billion. Portfolio levels of household savings. However, given more carbon neutral certified floorspace
occupancy at 30 June 2022 was 97.5 per rising interest rates, it is expected that retail than any other Australian property
cent and we are expecting that the quality sales growth will moderate. owner, and this continues to grow. We
of our portfolio will continue to attract are also innovating with an investment
Strong retail sales volumes continue to
ongoing tenant demand. in the restoration of 1,100 hectares of
underpin demand for Logistics facilities.
Australian biodiverse native koala habitat
The COVID-19 pandemic continues to The logistics sector is also benefiting from
in partnership with Greenfleet and First
disrupt the Australian economy and ongoing structural tailwinds with occupiers
Nations peoples for permanent removal
GPT’s operating environment. While most investing in the supply chain, along with
of our development pipeline residual
government pandemic restrictions have increasing penetration of e-commerce.
carbon emissions. The large scale of this
been lifted, global economies including Vacancy rates remain low in the core markets
nature positive initiative provides certainty
Australia are facing inflationary pressures nationwide, resulting in an expectation for
to stakeholders of GPT’s ongoing ability
and central banks including the Reserve further increases in market rents.
to operate our assets carbon neutral and
Bank of Australia have commenced
The Group has a growing development upfront commit to embodied carbon
raising interest rates. As a result, GPT’s
pipeline with an estimated end value of neutral developments.
cost of debt will increase in the second
$8.1 billion, providing the opportunity
half of 2022 and further in 2023. The
near term to further up weight in the Outlook
effect of rising bond yields is observed in
strong Logistics sector and to create While uncertainty remains in our
the recent slowing of investment capital
next generation Office assets over the trading environment, including further
flows and general economic uncertainty,
medium to long term in Melbourne, Sydney, rising interest rates, the Group expects
with the possibility of an increase in the
North Sydney, Parramatta and Brisbane. to deliver 2022 FFO of approximately
expectation for higher asset yields in the
The expansion of the Rouse Hill Town 32.4 cents per security and a distribution
future. This may lead to a softening of
Centre and development of residential of 25.0 cents per security.
valuation metrics for real estate assets.
apartments is expected to commence in
Whilst Retail shopping centres have GPT’s high quality diversified portfolio,
the first half of 2023, subject to market
broadly recovered since the end of strong balance sheet and experienced
conditions and authority approvals.
government pandemic restrictions, the management team is well positioned to
Strategically the Group is also focused create long-term value for securityholders.
return of CBD workers to the workplace
on growing its funds under management,
has been subdued even after mandated
underpinned by the Funds’ existing
work from home orders were fully lifted in
development pipeline and enhanced
late February 2022. Conditions including
by UniSuper selecting GPT to manage
prolonged extreme weather in Sydney
its $2.8 billion portfolio of real estate
and Brisbane, the outbreak of the winter
investments. The UniSuper mandate
flu season and the current COVID-19
transition to GPT management is expected
infection wave are impacting office
to complete in September 2022. The
space utilisation.
remaining uncommitted $1 billion capacity
GPT currently has 8 per cent (by area) of its in the ungeared GQLT and low gearing
Office portfolio vacant, and in the remainder levels in GWOF and GWSCF, position each
of 2022, 9 per cent of the portfolio’s leases of our funds strongly to grow through
(by income) expire. Our team is actively opportunistic acquisition and development.
pursuing opportunities to secure tenants
At 30 June 2022, the Group’s balance sheet
for this space. Tenants are continuing to
net gearing was 27.3 per cent, below the
seek out accommodation in better quality
midpoint of our stated gearing range of
office buildings and many businesses are
25 - 35 per cent and with cash and undrawn
taking the opportunity to upgrade their
bank facilities totalling $1.1 billion to meet
space, leading to growing demand in the
funding requirements through to 2024. GPT
premium office market. This supports
has strong credit ratings of A (negative) and
GPT’s view that this segment of the market
A2 (stable) by S&P and Moody’s respectively.
will be more resilient over the long-term.
In light of rising interest rates and uncertainty
Our assets have an average NABERS
in higher financing costs, in late July
energy rating of 5.8 stars and we expect
interest rate hedging levels were increased
an increasing number of office tenants will
resulting in the Group being 71% hedged on
seek to be located in assets with strong
drawn debt as at 30 June 2022 for the next
environmental credentials.
2.5 years at an average rate of 2.8%.
THE GPT GROUP INTERIM REPORT 2022 9RISK MANAGEMENT
Risk Management
GPT's approach to risk management incorporates culture, conduct, compliance,
processes and systems to enable the Group to realise potential opportunities while
managing potential adverse effects.
Our commitment to integrated risk management ensures an Managing risk in an uncertain operating environment
enterprise-wide approach to the identification, assessment and Over the last two years, COVID-19 has been the key driver of risks
management of risk, consistent with AS/NZS ISO 31000:2018. in GPT's operating environment. GPT's pandemic response is now
embedded into our usual business practices and although COVID-19
Risk Management Framework continues to cause some disruption, the rapidly evolving macro-
economic conditions have replaced the pandemic as the primary
driver of risks to the business.
Risk Policy
Communication and Consultation
In particular, GPT has identified rising inflation and increases in
Monitoring and Review
interest rates as having the potential to impact the Group's future
Risk Appetite Risk Governance
financial performance. This can happen directly through increased
borrowing and other costs, and indirectly through changes in
Risk Culture consumer sentiment, retail sales, supply chain disruption and
in the transactions market for commercial real estate, both
through a slowing in capital flows and a resetting of required
Risk Management Processes and Systems investment returns.
Identification | Assessment The GPT Board has recently reviewed the Group's Risk Appetite
Treatment | Assurance and Reporting Statement and Key Risks Dashboard, with a focus on the uncertain
macro-economic environment. GPT's Risk Management Framework
continues to operate effectively.
GPT's Risk Management Framework is overseen by the Board
and consists of the following key elements:
1. Risk Policy – The Risk Policy sets out the Group’s approach
to risk management, which is reviewed annually by the Board
Sustainability and Risk Committee. The Risk Policy is available
on GPT's website.
2. Risk Appetite Statement – The Board sets GPT’s risk
appetite to align with strategy, having regard to GPT's operating
environment and key risks. Risk appetite is documented in
our Risk Appetite Statement, against which all key investment
decisions are assessed.
3. Risk Governance – The Board is supported in its oversight of
the Risk Management Framework by the Sustainability and Risk
Committee, which reviews the effectiveness of the Framework,
and by the Audit Committee, the Leadership Team and the
Investment Committee.
4. Risk Culture – GPT maintains a transparent and accountable
culture where risk is actively considered and managed in our
day-to-day activities. Risk culture is assessed as part of all
internal audits and tracked using a Risk Culture Scorecard.
5. Risk Management Processes and Systems – GPT has
robust processes and systems in place for the identification,
assessment, treatment, assurance and reporting of risk.
10 THE GPT GROUP INTERIM REPORT 2022BUSINESS GROUP RISK DIRECTORS' FINANCIAL
OVERVIEW PERFORMANCE MANAGEMENT REPORT STATEMENTS
Key risks
The following table sets out GPT’s material risks and our actions in response to them. Included in the table is an indication of the change in
the level of each risk during the period.
Change in Risk for Value Creation
Risks Our Response 6 months to June 2022 Input Affected
Portfolio Operating and » A portfolio diversified by sector and geography Our investors
Financial Performance » Structured review of market conditions twice a year, Rising inflation and Real estate
Our portfolio including briefings from economists increases in interest rates Our people
operating and have the potential to
» Scenario modelling and stress testing of assumptions Environment
financial performance negatively impact GPT's
to inform decisions
is influenced by financial performance. Our customers,
internal and external » A disciplined investment and divestment approval suppliers and
factors including our process, including extensive due diligence requirements communities
investment decisions, » A development pipeline to enhance asset returns and
market conditions, maintain asset quality
interest rates, economic » Active management of our assets, including leasing, to
factors and potential ensure a large and diversified tenant base
disruption.
» Experienced and capable management, supplemented
with external capabilities where appropriate
» A structured program of investor engagement
Development » A disciplined acquisition and development approval Our investors
Development provides process, including extensive due diligence requirements GPT’s development Real estate
the Group with access » Oversight of developments through regular cross- pipeline remains strong, Our people
to new, high quality functional Project Control Group meetings particularly in the Office
assets. Environment
» Scenario modelling and stress testing of assumptions to and Logistics portfolios.
Delivering assets There are some signs of Our customers,
inform decisions
that exceed our supply chain disruption suppliers and
» Experienced management capability communities
risk adjusted return and increasing costs as a
requirements and » Application of a well defined development risk appetite result of macroeconomic
meet our sustainability with metrics around the proportion of a portfolio under conditions, however these
objectives is critical to development, contractor exposure and leasing pre- risks are being effectively
our success. commitments managed and are not
impacting project delivery
at the current time.
Capital Management » Stated gearing range of 25 to 35 per cent consistent with Our investors
Effective capital stable investment grade credit ratings in the “A” range Significant liquidity is in
management is » Maintenance of a minimum liquidity buffer in cash place and gearing sits
imperative to meet and surplus committed credit facilities below the mid-point
the Group’s ongoing of the stated range,
» Diversified funding sources
funding requirements however the cost of debt
and to withstand » Maintenance of a long weighted average debt term, with
is increasing materially in
market volatility. limits on the maximum amount of debt expiring in any
the forthcoming periods.
12 month period
» Hedging of interest rates to keep exposure within policy
» Limits on currency exposure
» Limits on exposure to counterparties
KEY Risk increased No change in risk Risk decreased
THE GPT GROUP INTERIM REPORT 2022 11RISK MANAGEMENT
Key risks CONTINUED
Change in Risk for Value Creation
Risks Our Response 6 months to June 2022 Input Affected
Health and Safety » A culture of safety first and integration of safety risk Real estate
GPT is committed management across the business COVID-19 continues Our people
to promoting and » Comprehensive health and safety management systems to present a risk to Our customers,
protecting the health, the health, safety
» Training and education of employees and induction suppliers and
safety and wellbeing of and wellbeing of our
of contractors communities
its people, customers, employees, customers,
contractors and all » Engagement of specialist safety consultants to assist in
contractors and users of
users of our assets. identifying risks and appropriate mitigation actions
our assets. There have
» Prompt and thorough investigation of all safety incidents been no other changes
to ascertain root causes and prevent future occurrences in the period, which have
» Participation in knowledge sharing within the industry materially impacted
» Comprehensive Crisis Management and Business health and safety risk.
Continuity Plans, tested annually
People and Culture » Active adoption and promotion of GPT’s values Our investors
Our ongoing success » A comprehensive employee Code of Conduct, including The employment market Our people
depends on our ability consequences for non-compliance has tightened and
to attract, engage and competition for skilled
» Employee Engagement Surveys every 18 to 24 months
retain a motivated resources has increased
with action plans to address results
and high-performing during the period.
workforce to deliver » An annual performance management process, setting
As a result, GPT has
our strategic objectives objectives and accountability
experienced increased
and an inclusive culture » Promotion of an inclusive workplace culture where staff turnover, although
that supports GPT's differences are valued, supported by policies and training this increase has not been
core values. » Monitoring of both risk culture and conduct risk material and is in line with
» An incentive system with capacity for discretionary industry turnover rates.
adjustments and clawback policy
» Benchmarking and setting competitive remuneration
» Development and succession planning
» Workforce planning
Environmental and » A portfolio of climate resilient assets that we own, Our investors
Social Sustainability develop and maintain through asset-level investment, GPT remains at the Real estate
Delivering sustainable divestment and capital expenditure strategies forefront of environmental Our people
outcomes for » A world-class Environment and Sustainability Management and social sustainability,
investors, customers, Environment
System, including policies and procedures for managing but acknowledges the
communities and the environmental and social sustainability risks speed of change in this Our customers,
environment, today and area and the need to suppliers and
» Participation in the S&P Global Corporate Sustainability
for future generations, adapt quickly. It is a key communities
Assessment, Global Real Estate Sustainability
is essential. GPT focus area.
Benchmark and other industry benchmarks
understands and
recognises that changes » Climate related risks and potential financial impacts
to the environment are assessed within GPT’s enterprise-wide Risk
and society can Management Framework
affect our assets and » Climate change reporting in line with the
business operations. recommendations of the Task Force on Climate-related
Financial Disclosures
» Active community engagement via The GPT
Foundation, GPT’s Reconciliation Action Plan and
other targeted programs
» A Modern Slavery Statement and program of work
in response to Modern Slavery legislation
KEY Risk increased No change in risk Risk decreased
12 THE GPT GROUP INTERIM REPORT 2022BUSINESS GROUP RISK DIRECTORS' FINANCIAL
OVERVIEW PERFORMANCE MANAGEMENT REPORT STATEMENTS
Change in Risk for Value Creation
Risks Our Response 6 months to June 2022 Input Affected
Technology and » A comprehensive technology risk management Real estate
Cyber Security framework including third party risk management There has been no Our people
Our ability to prevent procedures around cyber security material change in GPT's Our customers,
critical outages, ensure » Policies, guidelines and standards for Information technology and cyber suppliers and
ongoing available Management and Privacy security risk profile during communities
system access and the period. Cyber security
» Security testing and training completed by a specialist
respond to major threats are assessed on
external security firm, including penetration testing,
cyber security threats an ongoing basis, with
phishing exercises and social engineering testing
and breaches of our systems and processes
information technology » A Disaster Recovery Plan including annual disaster
to respond to threats
systems is vital to recovery testing, and a comprehensive Cyber Security
tested regularly.
ensure ongoing Incident Response Plan
business continuity and » External specialists and technology solutions in place to
the safety of people monitor GPT platforms
and assets. » Regular updates to technology hardware and software
incorporating recommended security patches
» Annual cyber risk assessments
» An Information Security Risk and Compliance
Committee overseeing information security
» Alignment to the National Institute of Standards and
Technology (NIST) Cyber Security Framework
Compliance » An experienced management team with Legal, Tax, Our investors
and Regulation Finance, Compliance and Risk Management expertise Real estate
There has been no
We ensure compliance » Engagement of external expert advisors as required material change in Our people
with all applicable
» An internal and external audit program overseen by GPT's compliance and Environment
regulatory requirements
the Audit Committee of the Board regulatory risk during
through our established Our customers,
» Active management of the Group’s Compliance the period.
policies and suppliers and
frameworks. Plans, in accordance with the requirements of the communities
Corporations Law
» Internal committees such as a Continuous Disclosure
Committee, a Data Privacy Committee and a Cyber
Security Governance Committee to monitor key
compliance risks
» An Anti-money Laundering and Counter-terrorism
Financing Policy, a Conflicts Management Policy, a
Whistleblower Policy, a Code of Conduct and other
internal policies and procedures which are reviewed
and enforced
» An ongoing program of training which addresses all key
compliance requirements
» Active involvement in the Property Council of Australia
and other industry bodies
KEY Risk increased No change in risk Risk decreased
THE GPT GROUP INTERIM REPORT 2022 13RISK MANAGEMENT
Climate-related risks
The need for urgent global action to address climate change has seen increased
acceptance and rising momentum over the past year, following events such as the
COP26 United Nations Climate Change Conference in October 2021. The outcomes of
COP26 highlight the importance of action in this decade to halve emissions by 2030 to
have the best chance of keeping global temperatures below 1.5 degrees Celsius.
As the owner and manager of a $27.4 billion Our business strategy of owning, This strategic flood mitigation investment,
portfolio of office, logistics and retail managing, and developing a diversified, which included newly installed floodgates,
properties across Australia, GPT recognises high quality portfolio of property assets sewer and stormwater diversion works and
the importance of identifying, monitoring principally located in Australian capital an updated flood management plan, was
and transparently reporting the climate cities and established regional centres, instrumental in keeping our assets fully
change risks and opportunities that could ensures that we are well positioned to operational and the fast actions taken by
have a material impact on its assets and manage stresses and shocks, including the building management team meant our
on the communities in which it operates. those from climate change. customers had constant access, with full
services such as electricity, water, and lifts
Climate risk considerations inform key This strategy also supports a long-term
remaining available.
decision-making across the Group, both to approach to investment in initiatives to
reduce the impact of our business on the help achieve our sustainability goals, Further examples of our adaptation plans,
environment and to ensure the resilience including tools to inform building design a detailed summary of the scenarios
of our assets to climate change. These and operations, and climate scenario adopted by GPT, and the potential impacts
range from resilience planning for a fast modelling. This benefits our tenants and identified by this analysis can be found in
transition to a low carbon energy supply to our broader stakeholders and improves the the Group’s Climate Disclosure Statement
scenario modelling and adaptation planning resilience of our assets to the impacts of on GPT’s website. This Statement is
for future physical impacts during asset physical climate risks. prepared with reference to the Task Force
acquisitions, major development projects on Climate-related Financial Disclosures
GPT has adopted two global warming
and major lifecycle upgrades. (TCFD) recommendations.
scenarios to model the potential future
impacts of climate change on its business
Governance Risk Management
and to ensure these impacts and
GPT’s approach to managing climate Effective risk management is fundamental
opportunities are considered in developing
change risk is overseen by the Board and to GPT’s ability to achieve its strategic and
the Group’s strategy.
the Sustainability and Risk Committee operational objectives. By understanding
(SRC). Management reports to the SRC The Group implemented a range of and effectively managing risk, GPT can
on sustainability matters such as climate mitigation and adaptation planning create and protect enterprise value and
change risks and opportunities, compliance strategies in response to climate change provide greater certainty and confidence
with GPT's Environmental Management and it is seeing tangible results. In February for stakeholders.
System and the delivery and assurance this year, Brisbane and its surrounding areas
Applying our enterprise-wide Risk
of environmental performance targets. experienced severe flooding, which caused
Management Framework, GPT’s Risk Team
widespread damage and power outages for
monitors the operation of risk management
Strategy many businesses and buildings in the city.
processes and assists in the identification,
GPT’s overarching business strategy is Centrally located on the Riverside precinct, assessment, treatment and monitoring of
outlined in the Our Strategy section of our iconic One One One Eagle Street and identified risks. The Risk Team supports the
The GPT Group 2021 Annual Report. In Riverside Centre locations were highly Leadership Team, the GPT Board, the Funds
2021, the Group’s strategy was refined exposed due to the continued swelling of Management Board, and their respective
to include ESG leadership as a strategic the Brisbane River. However, key capital committees, in ensuring that the Group
priority that will drive our ability to works and risk management activities that manages risk appropriately.
create value in the future. The proactive were undertaken following the 2011 flood
identification and management of key Climate change risk is included on GPT’s
event, ensured that both buildings were
risks and opportunities, including those Key Risk Dashboard, which is reviewed
protected and accessible.
related to climate change, support every six months by the Board Sustainability
the achievement of the Group’s strategy. and Risk Committee and quarterly by the
Leadership Team. The Committee receives
quarterly updates on the status of the
actions and commitments disclosed in
the metrics and targets section of GPT’s
Climate Disclosure Statement.
14 THE GPT GROUP INTERIM REPORT 2022BUSINESS GROUP RISK DIRECTORS' FINANCIAL
OVERVIEW PERFORMANCE MANAGEMENT REPORT STATEMENTS
Since 2018, GPT’s Energy Management Metrics and Targets
Plan has paid particular attention to GPT monitors its direct climate impacts
the risks of rising energy costs and and reports on emissions, energy, water
reduced reliability of supply as the grid and waste for each property annually.
transitions from ageing coal-fired power Our Environment Dashboard includes a
to renewable energy. portfolio-level summary for all key metrics
The Plan has three key pillars – — electricity, water, fuels, recycling, and
decarbonisation, resilient energy supplies emissions — since 2005.
and partnerships. Energy efficiency GPT obtains independent external
anchors our decarbonisation strategy, assurance over sustainability performance
with our average building efficiency data including the following climate change
improving by over 50% since 2005. metrics: energy consumption and energy
This has delivered both emissions production in base building and tenancies,
reductions and significant financial Scope 1 and Scope 2 greenhouse gas
savings to mitigate rising energy prices. emissions, water consumption, waste
Additionally, progressive procurement generated, and materials recycled by grade.
when buying energy means GPT can
optimise energy purchases at less volatile GPT sets environmental performance and
times in the market cycles. On-site solar PV resilience targets, driven by operational
(photo voltaic arrays) projects also reduce optimisation programs and capital upgrades.
exposure to energy market increases. Medium to longterm operational emissions
targets are also set at a portfolio level to
In addition, the Group has been inform energy procurement and offsets.
implementing innovative energy resilience
plans with its energy partners. These GPT obtains external certification of its
demand-side flexibility programs use carbon neutral status through the Australian
predictive technology to better match our Government Climate Active for Buildings
energy consumption to supply availability, Certification, which covers material Scope 1,
allowing us to use less energy when there 2, and 3 emissions.
are supply constraint issues in the grid. In addition, GPT’s corporate activities and
Backup generators are utilised when there business premises, including its travel and
are severe supply constraints, and GPT consumables, have been certified as carbon
are now starting to introduce large battery neutral by Climate Active since 2011.
storage into buildings to further improve
resilience. With these processes, we
describe our buildings as ‘Smart Energy
Hubs’ that are part of the solution for Find out more
us all to transition to a renewable and GPT's Climate Disclosure
sustainable future. Statement is available on our
In implementing these three strategies, website: www.gpt.com.au
GPT will see minimal impact on the cost
of operating its buildings due to energy
market volatility over the next 18 months
and it is closely watching the 2024
markets for any longer-term risks.
One One One Eagle Street and Riverside Centre, Brisbane THE GPT GROUP INTERIM REPORT 2022 15DIRECTORS’ REPORT
Directors’ Report
The Directors of GPT RE Limited, the Responsible Entity of General Property Trust, present Auditor’s independence declaration
their report together with the financial statements of the General Property Trust (the Trust) A copy of the auditor’s independence
and its controlled entities (the trust consolidated entity) for the half year ended 30 June declaration as required under section
2022. The trust consolidated entity together with GPT Management Holdings Limited and 307C of the Corporations Act 2001 is set
its controlled entities form the stapled entity, The GPT Group (GPT or The Group). out on page 18 and forms part of the
General Property Trust is a registered scheme, GPT Management Holdings Limited is Directors’ Report.
a company limited by shares, and GPT RE Limited is a company limited by shares, each
of which is incorporated and domiciled in Australia. The registered office and principal Rounding of amounts
place of business is Level 51, 25 Martin Place, Sydney NSW 2000. The amounts contained in this report and
in the financial statements have been
The Directors’ Report for the half year ended 30 June 2022 has been prepared in rounded to the nearest hundred thousand
accordance with the requirements of the Corporations Act 2001 and includes the dollars unless otherwise stated (where
following information: rounding is applicable) under the option
» Operating and Financial Review, including a review of the Group’s operations available to GPT under ASIC Corporations
and financial position, on pages 1 to 15 (Rounding in Financial/Directors’ Reports)
» Information on the Directors on page 16; and Instrument 2016/191. GPT is an entity to
which the Instrument applies.
» Auditor’s Independence Declaration on page 18.
Events subsequent to reporting date
On 15 August 2022, the Directors declared a distribution for the half year ended
30 June 2022 of 12.7 cents per security, being $243.3 million which is expected
to be paid on 31 August 2022.
On 1 July 2022, GPT acquired parcels of land at 865 Boundary Road, Truganina for
consideration of $34.0 million. The parcels of land will be classified as investment
property under development and inventory respectively.
Other than the above, the Directors are not aware of any matter or circumstances
occurring since 30 June 2022 that has significantly or may significantly affect the
operations of GPT, the results of those operations or the state of affairs of GPT in
the subsequent financial years.
Directors
The Directors of GPT Management Holdings Limited and GPT RE Limited at any time
during or since the end of the half year are:
Chairman, Non-Executive Director
Vickki McFadden (joined the Board in March 2018, appointed Chairman in May 2018)
Chief Executive Officer and Managing Director
Bob Johnston (joined the Board in September 2015)
Non-Executive Directors
Anne Brennan (joined the Board on 1 May 2022)
Tracey Horton AO (joined the Board in May 2019)
Angus McNaughton (joined the Board in November 2018 and retired on 11 May 2022)
Mark Menhinnitt (joined the Board in October 2019)
Michelle Somerville (joined the Board in December 2015)
Robert Whitfield AM (joined the Board in May 2020)
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